"Corel said after a trading halt that it had struck the deal
with Canaccord Capital, including an option for an additional $5
million at Canaccord's discretion. By mutual agreement, Corel and
Canaccord can add another $5 million to the deal. The number
of shares and the price will be determined based on an amount equal
to 90 percent of the average closing price of Corel common stock on
the Toronto Stock Exchange in the next four trading days."
"It's the first step in our comprehensive plan," Corel chief
financial officer John Blaine told Reuters. "Our next step will be
to concentrate on finalizing our cost savings plan."
"Corel did not disclose its cash reserves because it is in a
quiet period in advance of its quarter closing on May 31, but
insisted it can meet its financial obligations. "We're very
comfortable we will continue to meet our obligations," Blaine said,
adding that Corel reviewed six to eight financing options. "This is
the only equity financing we're pursuing."
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